Bev Murray Real Estate

Rental properties have the power to make investors rich, even through fluctuating housing market bust-and-boom cycles. Over time, real estate will create a viable income for those who know how to invest correctly from the beginning. As the current average tax rate in Florida is below the national average at 1.02% according to the 2017 tax revenue, and homes are readily available for purchase, investors are increasingly interested in making a purchase. However, smart investors know there is more than just knowing what type of property is desired before making any purchase.

Make sure to inspect zoning laws before purchasing any type of rental property. Does Gulf Gate allow for short-term or long-term rentals? Are there areas near Vamo that allow one type of rental, but not another? Check laws before moving forward with any property to make sure it will work for return on investment. Create a business plan, including income expectations, budget, and tax planning to ensure the property will pay the bills. Finally, contact a property manager if you plan to manage remotely. This person must be included on all property plans from the beginning to ensure a good working relationship that includes reliability and trust. A few of the best rental property options available for the greater Sarasota area include Airbnb’s, vacation rentals, and annual rentals for year-round residents. Read about all three types of properties to make an informed decision, then make a choice that supports both personal and financial goals.

Annual Rentals

Sarasota Annual Rental Home

Annual rentals typically do well in the areas of Gulf Gate, South Gate, Vamo, Lake Sarasota, Colonial Oaks, and the Museum area, especially for investors that approach the area with a full business plan. Gather rental statistics and points of interest to attract year-round tenants, and to make a purchase in a popular part of town. Buy a property within the higher-ranking schools of the area, especially if purchasing a multi-bedroom home. Discover what people of the area like to do in their spare time, then make a purchase close to these activities. Consider what a year-round renter needs in a home, finding properties that fill those needs. Place a property manager on retainer soon after the purchase has been completed to be prepared for future tenants.

Vacation Rentals

Older Waterfront Condos Offer Investors Less Expensive Alternatives

Investors in vacation rentals love the option of having a Florida home available whenever the investor wants to take a beach vacation. These rentals, in fact, are most successful on beaches or islands, making Sarasota beaches and islands ideal. Lido Key, Siesta Key, St. Armand’s Key, Manasota Key, and Bird Key all provide beautiful vacation destination rental opportunities. Technology has also made managing these properties easier, as vacation hopefuls can hop onto a website, book a week, then pay in a few easy steps. While a local maintenance manager is still wise, the process has become streamlined. This is one of the easier forms of passive incomes when a maintenance manager is on board, because weekly tenants generally ask for less in repairs than year-round tenants. However, the downside is the need for a cleaner between tenants, and the occasional, albeit rare, destructive renter. Properties closer to the ocean are sought after, but even properties further inland generate steady income.

Air BnB

Air BnB Can Be Both More Accessible & More Challenging For Investors

Air BnB’s tend to hold popularity in busier parts of the greater Sarasota area as well as overlapping with some vacation home areas. Neighborhoods such asdowntown, Siesta Isles, Siesta Key, and San Remo could be good candidates for Air BnB. Getting started with, and maintaining, an Air BnB differs starkly from the previously mentioned rentals. This is mainly because many people use their personal homes as Air BnB’s. These rentals have a few different rules, such as subletting rules, or homeowner’s association guidelines. Some mortgage companies may not allow for subletting, while homeowner’s insurance may increase due to extra residents. As with any investment, it’s important to read every policy in place before considering this type of investment opportunity. Even if the Air BnB will be managed remotely, it’s important to start slow. This remains a fairly new type of lodging for travelers and landlords alike, so begin with one or two guests in the beginning, learning what works and what doesn’t for everyone involved. If planning to invest remotely, consider hosting a guest in your personal home to discover how you want to manage your remote property. Talk to others who have made a similar investment, and read as much as possible before purchasing anything. Understanding where others have made mistakes will be educational while saving time and money.

Purchasing a rental property in Florida is an investment that will continue to pay over time, however, the decision must not be taken lightly. Moving slowly into the process will help educate and prepare you for every possible scenario. The Florida rental business continues to grow, and the housing market pays out over time, so taking the necessary time to invest correctly is the most resourceful approach possible.